With its vibrant cities, stunning natural landscapes, friendly locals, and excellent quality of life, Taiwan is quickly becoming a top destination for expats in Asia.
In this guide, we’ll walk you through everything you need to know about relocating to Taiwan from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
Taiwan follows a territorial taxation model. You will pay tax on local sourced incomes only, irrespective of your resident status.
if you spend more than 182 days in Taiwan during the tax year.
if you are Taiwan domiciled unless you spend no more than 29 days in Taiwan during the tax year.
Providing that you are considered a foreign professional, 50% of your earned income in excess of TWD 3,000,000 will be exempt from taxation in Taiwan for three years. Taiwan can be a very tax efficient place to live in and as such, Global Tax Consulting recommends seeking personalized tax planning advice to take advantage of the special tax regime.
50% in excess of 3,000,000 TWD exempt from Taiwan taxation.
Applied for three years.
Tax on property and share sales
Tax on value of owned assets
Tax on assets passed to heirs
Tax to contribute to state welfare
If you receive incomes overseas while you are living in the Taiwan, you may find that the source country, as a starting point, continues to tax the income.
Double taxation agreements may remove the source country’s taxing right and thus, enable you to receive incomes tax free globally.
At present, Taiwan has 35 double taxation agreements signed.
